The Corporacin Andina de Fomento (CAF), the development bank of the Andean countries in South America, and KfW, acting on behalf of the German ministry for economic cooperation and development (BMZ), have signed two financing agreements for the programmes entitled ‘Regenerative Energies and Energy Efficiency I and II’ in Latin America.

A total amount of €70mn has been provided for loans at favourable interest rates to finance projects implemented in the framework of bilateral cooperation with CAF. Some €30mn, ie, almost half of the total loan amount, are funds provided from the KfW Special Facility for Renewable Energies and Energy Efficiency.

The Special Facility for Renewable Energies and Energy Efficiency enables KfW, acting on behalf of the German federal government, to provide borrowers in developing countries with up to €500mn in low-interest loans during the period from 2005 to 2009.

The financing agreement serves to implement the second project financed under the special facility.